Dunkin' who? Donut wars about to heat up

Mayly Tao, co-owner of DK's Donuts in Santa Monica holds her hybrid "Wow-Nut," a waffle donut. She christened this flavor the "Birthday Sprinkles." Tao is hoping the pastry will be the start of something really big. It's the latest in the donut and waffle mashup craze. The family-owned donut shop has been on Santa Monica Boulevard for 33 years. H. LORREN AU JR , STAFF PHOTOGRAPHER

By the numbers: Doughnut shops

Dunkin’ Donuts

History: Bill Rosenberg opened the first Dunkin’ Donuts in 1950 in Quincy, Mass. His goal was to serve the most delicious coffee and doughnuts. The original coffee is still served today in stores.

Now: The Canton, Mass.-based Dunkin’ Brands operates, mostly through franchising, 7,700 Dunkin’ Donuts in the U.S. For fiscal 2013, the company reported $6.7 billion in revenue from its domestic franchisees.

SoCal outlook: Six franchisee groups are slated to open 82 Dunkin’ Donut shops, stretching from the San Fernando Valley to the Inland Empire to South Orange County. The locations are expected to open over the course of several years with some slated to open in late 2014 and 2015.

In Southern California, where restaurant chains and health fads are a way of life, doughnut shops are a cultural oddity – a food frontier dominated by families eking out a living, one glazed treat at a time.

For years, nearly 700 doughnut shops – from Los Angeles to Anaheim – have bucked the system. Like a well-balanced ecosystem, they’ve managed to co-exist among corporate giants like McDonald’s and 7-Eleven.

But these mom-and-pop shops are bracing for an East Coast storm with hurricane strength: Dunkin’ Donuts. The doughnut giant is marching West with 1,000 locations planned in California. More than 80 are in the works for the greater Los Angeles area.

Three have opened in San Diego, Camp Pendleton and Barstow.

“Everyone was running around like the sky was falling,” San Diego doughnut shop owner Santiago Campa said when Dunkin’ arrived in March.

HERE COMES DUNKIN’

After retreating from California in the 1990s, Dunkin’s latest attack is strategic. Chain officials believe they can win on price, breakfast variety and convenience. Many will have drive-through lanes and be open 24 hours.

Dunkin’ is also betting on a secret weapon that doesn’t involve deep-fried dough.

“The intensity of doughnut competition in Los Angeles, and even California, is something we are really excited by,” said Steve Rafferty, senior director of franchising at Dunkin’ Brands. “It tells us this is a customer base that loves doughnuts.”

“But we know we can offer more than that.”

DOUGHNUT PARADISE

Rafferty calls it love. But obsessive might be a better way to characterize Southern California’s passion for old-fashioneds. We seem to crave sugary deep-fried treats more than Big Macs and grande Frappuccinos.

Consider: Orange County is home to 259 doughnut shops. That’s 163 more locations than McDonald’s and 91 more than Starbucks. In Los Angeles County, doughnut shops outnumber Starbucks cafes by 144.

Related Links

Mayly Tao, co-owner of DK's Donuts in Santa Monica holds her hybrid "Wow-Nut," a waffle donut. She christened this flavor the "Birthday Sprinkles." Tao is hoping the pastry will be the start of something really big. It's the latest in the donut and waffle mashup craze. The family-owned donut shop has been on Santa Monica Boulevard for 33 years. H. LORREN AU JR , STAFF PHOTOGRAPHER
As Alyssa Batey helps customers, Dominique Edwards fills a box with doughnuts at a Dunkin‘ Donuts/Baskin-Robbins in San Diego. MARK RIGHTMIRE , STAFF PHOTOGRAPHER
Mayly Tao, co-owner of DK's Donuts in Santa Monica, playfully displays her store's glazed, toasted coconut O-Nut, left, and gooey cinnamon O-Nut. H. LORREN AU JR , STAFF PHOTOGRAPHER
DK's Donuts CEO/pastry chef Adam Vaun wanted to help his parents with their business. “I could buy them a house and a car and still be indebted to them,” Vaun says. He is the son of immigrant Cambodian parents who opened up shop after arriving in the U.S. in the late 1980s. CINDY YAMANAKA, STAFF PHOTOGRAPHER
Creme Brûlée has a hard sugar shell at Donut Bar in Fountain Valley. “Everyone was running around like the sky was falling,” San Diego doughnut shop owner Campa said when Dunkin' Donuts arrived in March. CINDY YAMANAKA,, STAFF PHOTOGRAPHER
A cutaway shot of an ube waffle with Hawaiian coconut glaze and toasted coconut reveals a purple-colored center. DK's Donuts in Santa Monica unveiled a new hybrid -- the Wow-Nut, a waffle donut. Co-owner Mayly Tao says this Wow-Nut flavor is her favorite. H. LORREN AU JR , STAFF PHOTOGRAPHER
Mayly Tao, co-owner of DK's Donuts in Santa Monica, looks over her varied offerings of "O-Nuts" including flavors like, from left, Nutella strawberry and banana, maple bacon and original flavor. H. LORREN AU JR , STAFF PHOTOGRAPHER
It's a family at DK's Donuts in Orange: administrator Ly Vaun, left, with daughter Kaliyana Chagollan, her dad, Sahak Vaun; mother Lauren Vaun; brother/CEO Adam Vaun; and cousin/pastry chef Jaymes Ngoy. CINDY YAMANAKA, STAFF PHOTOGRAPHER
The Elvis Bacon, a tribute to Elvis' favorite sandwich, banana and peanut butter, topped with bacon bits, center. It is a standout at DK's Donuts in Orange. The popular Orange shop has been family-run for 30 years. CINDY YAMANAKA, STAFF PHOTOGRAPHER
Donut Bar founder Santiago Campa had no interest in having another location, but a persuasive Hector Garcia won him over with his passion for an Orange County site. CINDY YAMANAKA, STAFF PHOTOGRAPHER
Vanilla Glazed Cronut with Red Velvet Crumbs is served at D K's in Orange. The donuts-croissant cross is a popular menu item. CINDY YAMANAKA, STAFF PHOTOGRAPHER
A box of a doughnuts tempts at a Dunkin' Donuts/Baskin-Robbins across from Seaport Village in San Diego. MARK RIGHTMIRE , STAFF PHOTOGRAPHER
An employee pours a cup of coffee at the Dunkin' Donuts/Baskin-Robbins store in San Diego located adjacent to the Embassy Suites San Diego Bay and across from Seaport Village. MARK RIGHTMIRE , STAFF PHOTOGRAPHER
Sayra Manjarrez pours a cup of coffee one morning at the Dunkin' Donuts/Baskin-Robbins store in San Diego located adjacent to the Embassy Suites San Diego Bay and across from Seaport Village. MARK RIGHTMIRE , STAFF PHOTOGRAPHER
An employee pours a cup of iced coffee at the Dunkin' Donuts/Baskin-Robbins store in San Diego located adjacent to the Embassy Suites San Diego Bay and across from Seaport Village. MARK RIGHTMIRE, STAFF PHOTOGRAPHER
The Egg White Flat is one of the many items on the breakfast menu at the Dunkin' Donuts/Baskin-Robbins store in San Diego adjacent to the Embassy Suites San Diego Bay and across from Seaport Village. MARK RIGHTMIRE, STAFF PHOTOGRAPHER
The interior of the Dunkin' Donuts/Baskin-Robbins store in San Diego adjacent to the Embassy Suites San Diego Bay and across from Seaport Village. MARK RIGHTMIRE , STAFF PHOTOGRAPHER
People walk by the outdoor patio of the Dunkin' Donuts/Baskin-Robbins store in San Diego adjacent to the Embassy Suites San Diego Bay and across from Seaport Village. MARK RIGHTMIRE , STAFF PHOTOGRAPHER
A man drinks his morning coffee on outdoor patio of the Dunkin' Donuts/Baskin-Robbins store in San Diego located adjacent to the Embassy Suites San Diego Bay and across from Seaport Village. MARK RIGHTMIRE , STAFF PHOTOGRAPHER
Alyssa Batey fills a box with doughnuts at the Dunkin' Donuts/Baskin-Robbins store in San Diego adjacent to an Embassy Suites across from Seaport Village. The company has plans for 1,000 locations in California. MARK RIGHTMIRE , STAFF PHOTOGRAPHER
Part of the menu at the Dunkin‘ Donuts/Baskin-Robbins store in San Diego located adjacent to the Embassy Suites San Diego Bay and across from Seaport Village. MARK RIGHTMIRE , STAFF PHOTOGRAPHER

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